How to choose an investment hotel apartment in Poland: A guide for investors
- Michal Polesný
- Jul 12
- 4 min read
Investing in hotel apartments in Poland offers an attractive passive income opportunity in the rapidly growing tourism market. Poland has become one of the most popular tourist destinations in Europe in recent years, which creates a solid foundation for hotel investments. But how to navigate this offer and choose a truly profitable project? We have prepared a comprehensive guide with practical tips for you.
1. Prefer existing hotels to projects under construction
Why is this important? In Poland, hotel projects are paid an excessively high percentage of the total price of the apartment during construction. Developers often demand up to 50-70% of the price before the project is completed, while the rental yield is usually fixed regardless of the actual performance of the hotel.
Our recommendation:
Focus on existing hotels with a proven operating history
Consider buying "second hand" - you'll often get a better price
When buying second-hand, you only pay the real estate agent's commission, which is significantly less than the risk associated with an unfinished project.
You will have access to real-time performance and occupancy data
2. Choose locations with year-round operation
How to recognize year-round operation?
Physical inspection:
Visit the hotel in person at different times of the year
Check if restaurants, wellness centers, and other services are open
Pay attention to the activities around the hotel
Price analysis on booking.com :
Compare room prices throughout the year
Seasonal locations show extreme price fluctuations (differences of up to 200-300%)
Year-round operations have a more stable price level with slight seasonal fluctuations
Monitor availability - if the hotel closes during certain periods, it is a warning sign
Advantages of year-round operation:
More stable income throughout the year (for the operator, you should choose a fixed income investment)
Less risk of lease failure
Better investment predictability
3. Choose places with high tourist traffic
Key factors:
Proximity to tourist attractions (historical centers, natural parks, ski areas)
Good transport accessibility (airport, train connection, highway)
Diversified range of activities attracting different types of tourists
Growing trend of attendance in the region
4. Focus on hotels with excellent reviews
What to watch out for on booking platforms:
Booking.com score: at least 8.0+
Number of reviews: at least 500+ ratings for statistical relevance
Review timeliness: regular new reviews
Management responses: active communication with guests
Advantages of well-rated hotels:
Higher occupancy
Possibility to demand higher prices
Guest loyalty and repeat visits
Better position in search results
5. Prefer large hotels with a wide range of services
Why are large hotels a better investment?
Competitive advantage:
Economies of scale allow for more efficient operations
Wider range of services (wellness, conferences, restaurants)
Better negotiating position with tour operators
Diversification of customer groups:
Families: need apartments with child services
Companies: require conference rooms and a business center
Couples: looking for romantic packages and wellness
Groups: need capacity and group activities
Adaptability to seasonality:
They can flexibly adapt the offer to current demand
In winter, it will focus on corporate clients, in summer on families
Less dependence on one type of guest
6. Avoid apartments with kitchenettes
Why are kitchens disadvantageous?
Higher acquisition costs:
A kitchenette significantly increases the price of an apartment
Additional equipment and maintenance costs
More complex cleaning and servicing
Worse project economics:
Guests cook and do not use the hotel restaurant
Reduced F&B (Food & Beverage) revenues
Hotel operations are thus less profitable
Practical problems:
Higher risk of equipment damage
More complex cleaning between guests
The need to replace appliances more frequently
7. Beware of unreasonably high guaranteed rents
How does this trap work? Sometimes the developer sets an unrealistically high level of guaranteed rent in order to charge a higher price for the apartment. The formula is simple: Price = Rent ÷ Yield
Example:
7% return guaranteed
Rent 35,000 PLN/year
Apartment price = 35,000 ÷ 0.07 = 500,000 PLN
However, if the market rent is only PLN 28,000/year, the developer is setting the rent too high, which may be a problem for the operator in the future.
Risks:
Problems for the hotel operator - if the operator has to pay too high a rent (not in line with the market), he may have a problem with the economics of the project
Possible reduction of guaranteed rent in the future
Overpriced apartment price
Worse marketability in the event of a sale
8. Always verify the market value of the property
Use comparison portals:
What to compare:
Price per m² in a given location
Similar apartments in the same area
Price trends over the last 12 months
The difference between the price of new and used properties
Warning signs:
Price significantly above market value
Suspiciously low comparative prices in the area
Significant difference between advertised and actual price
9. Additional tips for successful investment
Legal pre-investment due diligence:
Verify ownership of the property
Check the building permit and occupancy permit
Study the property management agreement
Financial analysis:
Request a detailed breakdown of operating costs
Find out the real occupancy history
Request transparent reporting from the operator
Risk factors:
Changes in legislation (taxes, regulations)
Economic crisis affecting tourism
New competition in the location
Problems with the hotel operator
In conclusion
Investing in hotel apartments in Poland, for example, can be very profitable, but it requires careful selection and analysis. The key to success is to invest in already operating hotels with proven performance, in locations with year-round operation and high tourist traffic. Avoid projects under construction, apartments with kitchenettes and suspiciously high guaranteed rents.
Remember: a quality investment requires time spent on analysis, but it will save you a lot of trouble and maximize your returns.
Are you considering investing in a hotel apartment in Poland? The Solacity team will be happy to help you choose the best investment opportunity. Contact us for individual consultation and analysis of specific projects.
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